Global Bond Yields: Still Too Low for Comfort

Continued ultralow yields contrast with signs the global economy has progress

Richard Barley

Global bond yields have risen modestly in recent weeks. But government bonds still look at odds with the economic news and other markets.

Even after their retreat, yields are still sharply lower than at the start of the year. German, U.S. and U.K. 10-year yields—at 0.22%, 1.59% and 1.87% respectively—are all 0.4 percentage point lower than at the end of 2015. But the backup has taken some of the shine off performance: U.K. gilts, for instance, are now up 3.8%, having been up more than 6% early in April.